A significant resistance level that may have suggested a potential recovery, the 26-day exponential moving average (EMA), proved challenging for Shiba Inu to surpass, leading to a setback. Despite some initial signs of stabilization after a prolonged decline, SHIB’s inability to break through this hurdle raises concerns about its near-term prospects. Following its recent drop, SHIB attempted to gain momentum by testing the 26 EMA as a possible breakout point.
However, the asset faced another rejection due to insufficient buying pressure to sustain an upward movement. This indicates that traders remain hesitant to push the price higher, suggesting that bearish sentiment is still prevalent in the market. Following its failure to overcome the 26 EMA, SHIB faces the possibility of greater downward pressure. With weak bullish conviction, as evidenced by the lack of significant buying volume, the asset is more likely to revisit lower support levels.
In the upcoming sessions, SHIB may test levels around $0.00001500 or lower if selling pressure continues. Conversely, a successful close above the 26 EMA could reignite bullish sentiment, allowing SHIB to aim for higher resistance levels near the 50 EMA. However, this would require a substantial shift in market sentiment, potentially driven by a broader recovery in the cryptocurrency market or an increase in investor confidence in meme coins.
Bitcoin Slowing Down
Concerns regarding the asset’s short-term trajectory are heightened as Bitcoin (BTC) slows down, with both momentum and volatility decreasing. Over the past few weeks, Bitcoin has been trading within a relatively tight range, striving to maintain critical support zones while avoiding significant resistance levels. Currently, Bitcoin is priced around $97,000, with resistance at $98,800 and support approximately at $93,800.
The range-bound movement indicates that neither bulls nor bears have full control over the market, reflecting traders’ caution. The idea that Bitcoin lacks the necessary momentum for a higher push is further supported by declining trading volume. A key technical indicator to monitor is the 50-day EMA, which Bitcoin has struggled to decisively breach.
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If Bitcoin can maintain a move above this level, it may indicate fresh bullish momentum, potentially targeting the psychological barrier of $100,000. However, failure to break through could result in further consolidation or a decline towards the 200-day EMA at around $84,700.
The market outlook remains divided; some traders expect a breakout while others believe Bitcoin may undergo a prolonged consolidation phase. Until a significant catalyst emerges, Bitcoin might remain trapped in this range, as evidenced by the lack of strong directional movement.
Traders should closely monitor Bitcoin’s ability to hold above $93,800 in the coming weeks. A substantial push beyond $98,800 could pave the way for another rally, while a breakdown below this level may lead to further declines. Until then, Bitcoin’s lack of momentum suggests it is currently losing steam at least temporarily.
XRP Gains Momentum
As XRP continues to gain traction, speculation rises regarding a potential significant rally. Investors are closely watching for the possibility of another surge following the breach of key resistance levels. However, caution is advised as XRP approaches crucial price points that may dictate its next direction.
Currently, XRP’s price hovers around $2.75, reflecting a strong rebound. The cryptocurrency recently broke above the 50 EMA, which is often regarded as a bullish indicator; if the price stays above this level, $3.00 becomes the next significant psychological resistance to observe.
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A successful breakout above $3 could confirm a long-term upward trend. If XRP maintains its momentum and volume continues to rise, a rally towards the $3.50-$3.70 range is conceivable. Additionally, sustained investor confidence and positive market sentiment may propel XRP into a new range above $4.00 in the upcoming weeks.
Despite recent gains, XRP continues to face resistance. With $2.50 serving as a crucial support level, a pullback could arise if there is a rejection near the $3.00-$3.20 mark. Should this support fail, the next significant downside target, where buyers have previously shown interest, would be $2.28. A decline below $2.00 would reveal stronger bearish sentiment.
